NON-RESIDENT TAX

Keep More of Your Rental Income as a Non-Resident

Don’t pay the default 25% rate. File your Section 216 with us to claim deductions that significantly lower your tax bill.

Contact Us
schedule tax season logo

What you need to know about Non-Resident Tax

Pay for what you make, instead of a fixed amount

If you’re a non-resident of Canada earning rental income from Canadian property, filing a Section 216 tax return (S216 return) allows you to pay tax on your net rental income instead of the default 25% tax on gross rent withheld by the payer or agent.

Significantly lower your tax obligation

This special filing option can significantly reduce the amount of tax owed and ensure full compliance with the Canada Revenue Agency (CRA), especially if you own real estate in cities like Toronto, Mississauga, Vancouver, or anywhere in Canada.

Report your expenses and save big

Under Section 216 of the Income Tax Act, non-residents can choose to file a Canadian tax return to report their rental income and related expenses.

Without this election, the CRA automatically requires 25% tax on total rent received, even before deducting any costs, which often results in paying more tax than necessary.

Never pay more than you need to

Share information about your self-employment, freelance, or rental income, and every required tax form is added for you.

Whether you’re living in Canada or abroad, all available deductions are identified to help increase your tax savings.

Enjoy peace of mind knowing your return is accurate, compliant, and optimized for the highest possible refund.

Why choose C.A.T.S for your Non-Resident Tax needs?

Maximum Refund Guarantee

We search for every eligible deduction and credit to maximize your return.

Specialists in Non-Resident Tax

We understand the complexities of cross-border income, residency changes, and foreign asset reporting.

Completely Done-For-You Process

Send us the required documents and let our team of tax professionals handle the rest.

Why our clients love us

  • "Couldn't Recommend Them Enough"

    I have been going to CATS accounting for over 10 years now. I have never been disappointed and have never had any mistakes on my files. All the accountants are thorough, professional and very adept at what they do.

    Nadia W.

  • "Exceptional Customer Care and Commitment"

    I would like to thank C.A.T.S Accounting office for their professionalism and sincere dedication in providing their accounting tax services to me throughout the past years. [Tax Expert Name] and his team go always go the extra mile to make sure everything is done properly, using all the tools and knowledge at their disposal. It is rare to encounter such a high standard of care and commitment.

    Sherine B.

  • "Eliminated My Anxiety About Taxes"

    There are no words grand enough to express how much I enjoy working with [Tax Expert Name] and his fantastic team or how they have cleared the cobwebs from my mind thus reducing the anxiety associated with taxes. I am so blessed to have an accounting group to trust and console with at unexpected times. Thank you for your care and attention!

    Kiki N.

Frequently asked questions

  • A Section 216 tax return is a special type of income tax return that allows non-residents of Canada who earn rental income or timber royalties from Canadian property to pay tax on their net income instead of the gross amount. This often results in a lower overall tax bill compared to the standard 25% non-resident withholding tax.

  • Non-residents who earn rental income from property in Canada should file a Section 216 tax return. It applies to anyone who owns Canadian real estate and earns rental income on that property while living outside of Canada. Filing under Section 216 can help recover some of the tax already withheld by your property manager or tenant.

  • The Section 216 return must generally be filed by June 30 of the following year, regardless of your personal tax filing deadline. However, to recover withheld taxes as quickly as possible, it’s best to file as soon as you receive your NR4 slip or rental income details.

  • If you don’t file a Section 216 return, the Canada Revenue Agency (CRA) will keep the full 25% withholding tax on your gross rental income. This means you could miss out on a significant refund. Filing ensures you are only taxed on your net income after deducting expenses like mortgage interest, repairs, property taxes, and management fees.

  • You’ll typically need:

    • NR6 form (if you applied for reduced withholding)

    • NR4 slip showing taxes withheld

    • Details of rental income received

    • Receipts for eligible property expenses (mortgage interest, utilities, insurance, etc.)

    • A copy of your property management agreement (if applicable)

    Having these ready helps ensure your filing is accurate and maximizes potential refunds.

  • Yes. If you don’t have a Social Insurance Number (SIN), you can apply for an Individual Tax Number (ITN) from the CRA. This number allows non-residents to file returns, claim refunds, and stay compliant with Canadian tax laws.

  • Processing times vary, but typically range between 8 to 16 weeks once all forms are correctly submitted. Delays may occur if documentation is incomplete or if CRA requests additional information.

  • Common deductible expenses include:

    • Mortgage interest and bank fees

    • Property taxes and insurance

    • Repairs, maintenance, and utilities

    • Property management and accounting fees

    • Advertising costs for finding tenants

    These deductions can significantly lower your taxable income and help you receive a refund.

  • No. Each property requires a separate Section 216 return. The CRA treats each rental property as an independent source of income, so you must report income and expenses for each one individually.

  • Yes. If you didn’t file in previous years, you can still file retroactively for up to 10 years in some cases. This allows non-residents to recover overpaid taxes from earlier years, provided the proper documentation and NR4 slips are available.

  • If you fall under any of the following common situations, Section 216 Applies

    • Canadians who moved abroad but rent out former homes

    • Non-resident investors owning rental properties in Canada

    • Couples jointly owning Canadian real estate

    • Foreign property owners receiving rent through a Canadian agent

    • Landlords with CRA non-resident withholding on rent

Contact us

Interested in working together? Fill out some info and we will be in touch shortly. We can’t wait to hear from you!